Bangkok: Thailand’s informal economy, accounting for nearly 50% of the country’s GDP, presents a significant opportunity for reform, according to Thai economist Dr. Anusorn Thammajai. The shadow economy’s exclusion from official calculations results in inaccurate GDP data, complicating economic planning and policy-making.
Dr. Anusorn, Dean of the Faculty of Economics at the University of the Thai Chamber of Commerce, proposed a three-part framework to integrate the informal sector into Thailand’s formal economy. This includes regulation to boost tax revenue and job creation, enhancing social protections, and addressing illegal activities that disrupt social harmony.
Thailand’s informal economy encompasses a wide range of activities, from street vending and barter systems to illegal enterprises such as gambling, prostitution, and drug trafficking. The influence of gray Chinese capital has further intensified the need for reform. According to Dr. Anusorn, regulating these sectors could reduce corruption, improve public welfare, and create economic growth opportunities.
One pillar of his proposal involves the potential legalization of gambling through entertainment complexes. Drawing inspiration from global examples such as Macau and Singapore, these venues could generate substantial tax revenue and promote tourism. However, he emphasized the importance of strict oversight to prevent negative social and economic impacts, including household debt and money laundering.
For Thailand, with its abundant natural attractions, careful consideration is required to ensure that entertainment complexes align with market demand and public benefit. Dr. Anusorn estimates that a well-regulated gambling industry could contribute up to 40 billion baht ($1.16 billion) in state revenue annually, but only if supported by clear legal frameworks and robust enforcement mechanisms.
The proposal underscores the need for a collaborative approach between the state and society to achieve transparency and prevent corruption.
